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Callaway swings to loss as sales fall

October 31, 2008|Times Wire Services

Callaway Golf Co. said it swung to a third-quarter loss as consumers cut back on purchases of discretionary goods and shifted to lower-priced models of the company's golf clubs and balls.

Carlsbad, Calif.-based Callaway reported a net loss of $7.4 million, or 12 cents a share, compared with net income of $1.3 million, or 2 cents, a year earlier.

Analysts surveyed by Thomson Reuters had forecast a narrower loss in the latest period of 9 cents a share.

Sales fell 9% to $213.5 million -- slightly above analysts' forecast of $213.0 million -- from $235.5 million a year earlier.

Chief Executive George Fellows said initiatives to improve profit margins were continuing to meet company expectations and were "mitigating the negative shift in product mix we are seeing due to the current economic conditions."

Fellows said additions to Callaway's 2009 product line and other company initiatives have left the company in position "for solid growth when the global economy begins to recover."

Callaway shares rose 52 cents, or 5.2%, to $10.53. The earnings news was released after the end of regular trading.

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